A dependable business leader has the ability to develop the ethical atmosphere or environment in a company or organization through the institutionalization of the ethical systems and the company compliances (Petrick &. Quinn, 2000, 2001). In the USA there are two major components of legal compliance, which focus on averting criminal misconduct. They are a) The US Federal Sentencing Guidelines for Organizations (United States Sentencing Commission, 2000), and b) the Sarbanes Oxley Act (DesJardins, 2011). There are numerous system components that are designed for enabling dependable conduct in companies. Among them, the two most important components are ethical leadership perception measurement instruments and organizational ethics needs assessment.
The US Federal Sentencing Guidelines are specially formulated to punish those organizations which have involved themselves in criminal and offensive activities. Organizations like individuals can also be found guilty of conducting criminal offenses. Accordingly, norms have been set to punish those organizations found violating the business ethical standards. As an organization, unlike the individuals, cannot be imprisoned for their criminal activities, so they are fined, ordered for restitution or issued public notices for exposing or sharing their forfeiture status. The sentencing commission collects data against the company convicted of the crime. It has been seen over the years that there are a wide variety of crimes. The commonly found offenses among these are fraud, tax offense, drug or food violations, discharge of environmental waste, etc.
The system components are designed to maintain ethical norms within the organization so that criminal activities are not followed within the company. Organization ethics involves the ethics of the organization, and how the organization responds to the external and internal stimulus ethically. The ethics that prevail within the organization are highly dependent on the culture of the organization. It also helps in expressing the values of the organization to the employees and the other stakeholders of the company. . .